Supplementary memorandum from the FCO:
UK supplied equipment in the Occupied Territories (OTs)

The Foreign Secretary in his oral briefing before
the Strategic Export Controls Committees on 21 March undertook
to inform them of the Israeli response to our request for an explanation
about the use of UK-supplied equipment in the Occupied Territories
(OTs). We have now received a written response from the Israeli
Government.

The Israeli Government has said that the assurances
given on 29 November 2000 were in good faith, and also offered
an explanation based on operational need about the use of the
armoured personnel carriers (APCs) in the OTs. They did not however
accept that this was a breach of the assurances given and they
have not committed to stop using the APCs in the OTs. Accordingly
we will continue to assess export licence applications for the
proposed export of controlled goods to Israel on a case by case
basis against the consolidated EU and national arms export licensing
criteria. But in doing so we will no longer take the Israeli assurances
given on 29 November 2000 into account.

We also have questions about other possible
breaches of the assurances with regard to equipment supplied under
previous administrations, which we are taking up with the Israeli
authorities. We will revert with further information as soon as
possible.